Aiming at the first venture capital fund targeting prediction market infrastructure... '5c(c) Capital,' founded by someone from Carlisle, has been established.

The first venture capital fund focused on prediction markets has been launched. Led by former employees of Kalshi, this fund will precisely target the core infrastructure of the rapidly growing “prediction market” industry.

Former Kalshi employees establish 5c© Capital

According to Fortune magazine, early Kalshi team members Adi Rajapurapakaran and former operations manager Noah Zingler-Sternick have founded “5c© Capital,” which is currently raising up to $35 million (about 520 billion KRW). The fund’s name is derived from provisions related to “event contracts” in the U.S. Commodity Exchange Act.

The two founders previously served as the second-ranked traders at Kalshi’s market makers and as operations leaders, having firsthand experience with the structure of prediction markets.

Kalshi and Polymarket’s joint investment draws attention

In this fund, Kalshi CEO Tarek Mansour and Polymarket CEO Shayne Coplan are both participating as investors. The two companies have been engaged in a valuation race and public competition worth billions of dollars, making their joint participation in the same fund quite rare.

Additionally, notable investors include Marc Andreessen, co-founder of a16z; Micky Malka, founder of Ribbit Capital; and Kyle Samani, former partner at Multicoin Capital. It is reported that the total number of investors exceeds 20.

Focusing on infrastructure investment in prediction markets

5c© Capital plans to invest in about 20 companies over the next two years. Its main targets include market makers, prediction market index providers, and other infrastructure firms. The strategic focus is not solely on platforms but on building the foundational ecosystem.

Prediction markets are structures that trade the probabilities of events such as elections, economic indicators, and sports outcomes. Recently, their growth has accelerated through integration with cryptocurrencies.

Surging valuations… signals of market expansion

Market growth momentum is also very strong. Kalshi recently raised $1 billion (about 1.4885 trillion KRW) in a funding round led by Coatue Management, with a valuation reaching $22 billion (about 32.7 trillion KRW), doubling since November last year.

Polymarket is also reportedly pursuing funding with a valuation target of around $20 billion (about 29.7 trillion KRW).

As prediction markets gain attention as the “next-generation financial infrastructure,” the establishment of this fund is seen as a sign of accelerated ecosystem expansion. Analysts interpret this as a shift beyond platform competition into infrastructure competition.

Summary by TokenPost.ai

🔎 Market Insights

The prediction market industry is transitioning from platform competition to an early stage of infrastructure-centered competition. Not only major players like Kalshi and Polymarket, but also investments in core ecosystem infrastructure companies are surging, with risk capital flowing into the sector.

💡 Strategic Highlights

Compared to purely prediction platforms, investing in market makers, data providers, and index operators—“invisible core infrastructure”—is viewed as a long-term strategy to gain market dominance. The participation of CEOs from competing firms in the same fund also reflects a shared confidence in industry expansion.

📘 Terminology Explanation

Prediction Market: A market that trades the probabilities of future event outcomes

Market Maker: A key participant providing market liquidity

Event Contract: A derivative that pays out based on whether a specific event occurs

💡 FAQ

Q. How do prediction markets differ from regular investments?

Prediction markets are not about investing in company value like stocks, but about betting on the likelihood of specific events. For example, you can buy or sell outcomes of elections or economic indicator releases.

Q. Why focus on investing in infrastructure companies?

Platform competition is fierce and easily replaceable, but infrastructure providers like market makers or data providers are crucial to the entire ecosystem. Long-term, they can generate more stable returns and influence.

Q. Why are Kalshi and Polymarket investing together?

Although competitors, market growth benefits both. Investing in shared infrastructure can be seen as a strategic move to accelerate industry expansion.

TP AI Notes

This article uses a language model based on TokenPost.ai for summarization. The main content may be omitted or may differ from actual facts.